The Importance Of Market Research, Competitor Analysis, External Factors, And SWOT Analysis In Developing A Successful Marketing Strategy

The Role of Market Research in Marketing Strategies

Discuss about the Marketing for Oriel Living Home Property Company.

Market research happens to be one of the most useful approach businesses can implement planning their marketing strategies. It involves carrying out an assessment of the conditions in the market with regards to consumers, their consumption patterns as well as competition from rivals. Although the concept is overlooked by many entrepreneurs, it is a critical undertaking that requires a carefully planned approach, especially whether market uncertainty exists. Depending on the product to be launched into the market, primary or secondary information can be collected to aid in developing a marketing plan. Essentially, the data needed can be obtained through surveys, product testing or engaging a focus group.

Oriel Living case puts this concept into perspective and how well it can be used to design an effective marketing plan. In their market research, Oriel Living, a home property company, undertook a market research based on both secondary and primary data to determine its target market. During the research, the company utilized face-to-face interviews, telephone, group discussions and secondary data (to determine the market trends) to gather the necessary information. From the survey, the company was able to determine preferred home features from the consumers, identify their target market and confirm the project feasibility (Tomlinson, 2016).

Based on this example, it is apparent that market research concepts can be practiced by organizations to benefit from its varied uses. It is highly recommended that such a research utilizes both primary and secondary information for better insights to be obtained. Although the market research may mislead entrepreneurs when not correctly carried out, its usefulness in preparing a market plan is crucial. Therefore, it remains prudent to undertake this procedure while launching a new product in the market or expanding to new markets whose conditions are not known to the entrepreneurs or companies launching the product.

It is inevitable for businesses to experience competition in the markets or industry they are operating. Despite competition being considered as a negative factor in for companies, its existence can be advantageous for businesses in a myriad of ways. For instance, while developing marketing objectives or setting sales targets for particular products, information on competitors and the severity of the competition becomes essential aspects. For this reason, developing a strategic framework for growth or marketing products in the market might be influenced by the competition level in the market (Roson, 2015).

For my favorite soft drink products from Coca-Cola, Pepsi company products have caused a substantial competition on them. It is the presence of Pepsi and other soft drinks existing in the market that has triggered Coca-Cola Company to initiate marketing campaigns to curb the growing decline in sales and market share. Due to the impact, the competitors had on the company’s products, it launched the “One Brand” campaign that was aimed at uniting its trademark. Furthermore, the company objectives of making the product gain a global attention, it went ahead to design another campaign, “Taste the Feeling”, that is still running at the moment (Moye, 2016).  It is because of this competition that Coca-Cola re-strategized its marketing approach and formulated new objectives to drive its sales to the original figures.

Competition as a Driving Force in Business

From the example, it is clear that competition not only has negative impacts on the businesses but also advantages. Through competitors, weaknesses are revealed and any company might use the privilege to restructure their approach to the market and design marketing campaigns that may not only assure the business consumer retention but also an improvement in their market shares. It is therefore recommended that competitor analysis be part of a growing business for it to sustain and grow its market share as well as retaining consumers.

While entering or launching a new product in an existing market, the effect of several external factors needs to be considered. Political environment, economic conditions, social, technology, environmental and legal factors impact on any investments in the market significantly. Although these factors may not necessarily interfere with the performance of the products already in the market, it is better to examine them beforehand. It allows businesses to anticipate any challenges and prepare adequately to handle them. Furthermore, PESTEL analysis evaluates the entire industry thus making it possible for all factors to be considered during the initial stages of entering the market.

In the clothing industry, the introduction of hand-held digital fabric printer is expected to be braced with several external factors in the fashion industry. Political factors such as taxation and government regulation governing the processing of fabrics may significantly affect the performance of this product in the market. With economic factors, the availability of enough capital for companies to invest in these printers might be a challenge. Furthermore, its acceptance as an alternative of the previous printing machines may depend on its viability in the business. On social factors, the consumer behavior and demand of fabric printing may determine how well the new printer’s sales in the fashion industry. As for technology, the level of innovation in the market may render the new product the best or worse in the market, thus impacting its performance in the market (Frue, 2018). The friendly nature of the hand-held printer may make it the best alternative in the market considering it does not present any environmental issues. Just like any products, it must comply with the laws of the government on quality, pricing, and safety. Based on this analysis, it is apparent that external factors are essential in determining how well a product performs after entering the market.

When developing a marketing strategy that is expected to be successful, considerations of strengths, weaknesses, opportunities, and threats is a critical stage. Every organization may wish to undertake this procedure and use the insights to establish their marketing plan that may take advantage of the opportunities and strengths while at the same time addressing the weaknesses and threats that might affect the company.

STRENGTHS ·         Brand equity ·         High growth rate ·         Marketing and sponsorship ·         Innovation	WEAKNESSES ·         Competition ·         Financial strength ·         Market share ·         Wage disputes
OPPORTUNITIES ·         New target markets ·         New product lines ·         More disposable incomes ·         More sponsorships	THREATS ·         Economic conditions ·         Fraud and counterfeit products

 To put this into perspective, an evaluation of how Puma used SWOT analysis to guide its decision making is prudent.

Based on the information, Puma capitalized on the opportunities available to fight the threats of competition in the market. Particularly, Puma decided to sponsor many sporting activities including Barclays Premier League and other athletic events. The decision to take this approach in their marketing efforts was based on the evaluation of the company’s current condition including its strengths and weaknesses. Furthermore, the positioning of the products in the market considering the SWOT analysis findings propelled the company further. It is for this reason that Puma has experienced a high growth rate in the recent years (Bhasin, 2018).

External Factors to Consider in a Competitive Market

Despite many organizations overlooking this aspect when preparing their marketing plan, its usefulness is decision making in marketing mix as well as designing corporate strategies is immense.  As a recommendation, organizations need to incorporate SWOT analysis in any marketing plans so that to make feasible and informed decisions on what is the best approach to use. Although the approach may not necessarily provide an all-inclusive insight on all capabilities and issues of the company, it still remains to be a viable option of arriving at critical decisions in marketing.

Brands operating in a market that experiences dynamic changes more frequent are bound to be affected by shifts. Essentially, targeting, positioning segmentation relies on vital information from the market and any trends that emerge. Considering the beverage industry, for which I have an attachment with, the changing consumer preferences is a current trend that many marketers can use to achieve success in their businesses. Consumers at the moment are influenced by flavors, health benefits, quality and availability of safe beverages in the market. With such information, businesses can focus their attention on specific populations and segments to tap the growing opportunities.

While trying to establish a brand position in the beverage industry, this trend can be a crucial lead. For instance, brands that adhere to quality standards, safety, and have positive health benefits to the consumers might well position in the market to tap the opportunity presented by this trend. Furthermore, incorporating sales promotion to create awareness to the consumers might as well enhance the position of beverage brands in the industry (Schultz & Block, 2014). Alternatively, depending on the demands from different consumer segments, a business can focus on marketing a specific group that is known to consumer beverages in massive quantities. For instance, a brand can focus on a consumer segment that has athletes and provides beverages that adhere to the preferences of the consumers. On targeting, the trend can shape on what the product should address to fulfill the need of the consumers. In this regard, targeting the potential consumers with a high precision might be possible.

Despite SPT being partly used in many organization marketing their brands, it is essential to have them applied on any opportunity that presents itself in the market. However, care should be taken to avoid investing heavily without anticipating on future changes in consumer preferences.

Introducing a new product in the market is a challenging process that may at times impact the momentum of the brand in the market. Depending on the push that an organization/company provides on the debut of the product, its management in the market may fail or succeed. Furthermore, both internal and external factors affect products entering the market for the first time and consequently affecting their general performance (Capatina & Draghescu, 2015).

Among the many products that have ever been launched, few have managed to succeed and maintain the success without stagnating at any given moment. Panacea, a skincare product, experienced a successful launch and immediately picked a strategic position in the Korean market. According to the CEO Terry Lee, the brand experienced success due to the efforts they accorded the market research phase. The company conducted a series of discussions with beauty experts as well as consumers to establish their preferences. As a result, the brand performed well in its first 30 days by generating a $16,000 revenue (Mullin, 2018). With other factors considered, the brand is expected to maintain the same momentum the whole of 2018.

In a failure case, the launch of Samsung Note 7 to the market was halted by internal factors that made it possible for the brand to sell in the market. Consumers complained of the smartphones exploding while charging. According to the company, the flaw was caused by problems in battery manufacturing that came from two different suppliers (Mozur, 2017). Based on this failure, it is apparent that management of the brand from its initial stages of manufacturing was not strictly adhered to, leading to the immature termination of the brand from the market.

Since brand management is a complex task that requires extensive research and development, it is advisable for companies to consider all factors, both internal and external that may affect the performance of a brand in the market. Such factors may include, quality, price, economic conditions, competition or safety of the product. Evidently, Samsung Note 7 failed to address such factors hence its failure in the market.

References

Bhasin, H. (2018). SWOT Analysis of Puma. Retrieved 27 April 2018, from https://www.marketing91.com/swot-analysis-puma/

Capatina, G., & Draghescu, F. (2015). Success factors of a new product launch: The Case of iPhone launch. International Journal of Economics and Finance, 7(5). doi:10.5539/ijef.v7n5p61

Frue, K. (2018). PESTLE Analysis of the fashion industry. Retrieved 27 April 2018, from https://pestleanalysis.com/pestle-analysis-of-the-fashion-industry/

Moye, J. (2016). Coca-Cola announces new ‘one brand’ marketing strategy and global campaign. The Coca-Cola Company. Retrieved 27 April 2018, from https://www.coca-colacompany.com/stories/taste-the-feeling-launch

Mozur, P. (2017). Galaxy Note 7 fires caused by battery and design flaws, Samsung says. New York Times. Retrieved 27 April 2018, from https://www.nytimes.com/2017/01/22/business/samsung-galaxy-note-7-battery-fires-report.html

Mullin, S. (2018). Launching a successful brand: How Panacea made over $16,000 in 30 days. Retrieved 27 April 2018, from https://www.shopify.com/blog/launching-a-brand

Roson, R. (2015). Competition between multiproduct firms with heterogeneous. Advances in Social Sciences Research Journal, 2(7). doi:10.14738/assrj.27.1215

Schultz, D., & Block, M. (2014). Sales promotion influencing consumer brand preferences/purchases. Journal of Consumer Marketing, 31(3), 212-217. doi:10.1108/jcm-01-2014-0822

Tomlinson, G. (2016). Property research success story | Oriel Living. Retrieved 27 April 2018, from https://www.themarketresearchers.co.uk/portfolio/property-research/